This week, the great and the good of UK automotive industry gathered in London, as leaders, policymakers, and innovators joined the SMMT International Automotive Summit, just one day after the Government unveiled its ambitious new Modern Industrial Strategy.
The week began with the annual SMMT Summer Parliamentary Reception, hosted by Matt Western MP, Chair of the Motor Group APPG. The event brought together members and key stakeholders to hear about our new report, The Competitive Edge: Driving Long-Term UK Automotive Growth, which sets out a path to success for the industry worth a staggering £50 billon.
This report outlines a roadmap for enhancing the sector’s international competitiveness, and introduces the first-ever UK Automotive Business Leaders Barometer. The findings highlight the industry’s core strengths and investment momentum, with more than half of businesses have recently secured or planning new investments. However, the report also reveals concerns over global trade conditions and the feasibility of achieving net zero targets amid rising costs and declining profitability.
It was no surprise that the government’s newly announced Industrial Strategy took centre stage at the Summit. Welcomed by the industry, the strategy identifies eight high-growth sectors, with automotive positioned as a cornerstone of advanced manufacturing. The transformative potential of the sector as we transition to net zero would mean automotive becoming the flagship of UK innovation, provided there is unified support across all levels of government.
A standout panel at the Summit zeroed in on UK manufacturing and commercial vehicles, highlighting several critical issues: the need for reducing energy costs, with the example given of operating a UK plant is currently twice as expensive as running a similar facility in Europe. And to ensure we have the skilled workforce we need for the future as production shifts to zero-emission vehicles, there is a pressing need to retrain workers and attract new talent with skills in mechanical, electrical, and cybersecurity disciplines.
Secretary of State for Business and Trade, Jonathan Reynolds MP, gave the keynote government address and made clear how the new industrial strategy lays out a bold vision for transforming UK manufacturing over the next ten years. He praised his favourite sector and made clear with cross-departmental support and swift implementation, the UK is poised to lead in sustainable, high-tech automotive production.
From Westminster to the factory floor, the message is clear: the UK automotive industry is ready to evolve. With strategic investment, policy alignment, and a skilled workforce, the road to 2035 could be one of innovation, resilience, and global leadership.
